Goldman was one of nine big banks the Treasury aided with capital injections in early October. The prior month, the government decided, partly at the urging of New York Fed officials, to bail out insurer American International Group Inc. The initial $85 billion provided to AIG enabled it to pay a portion of $8.1 billion it owed to Goldman, stemming from past trading agreements. By the end of the year, Goldman had gotten all of the $8.1 billion as AIG received more government aid.

Mr. Friedman says that although directors were briefed occasionally on the actions the New York Fed took regarding AIG, that was just a courtesy. “The New York Fed board was not involved in the decisions to take any actions related to AIG,” he said.

Friedman says he’ll resign by the end of the year. That ought to and will probably come much sooner. Meanwhile, he’ll be all right:

Mr. Friedman’s December and January stock purchases now are showing accrued gains of $2.7 million.

Really nice digging here by the Journal.

Ryan Chittum is a former Wall Street Journal reporter, and deputy editor of The Audit, CJR's business section. If you see notable business journalism, give him a heads-up at rc2538@columbia.edu.